Deutsche Bank’s non-tariff employees include, for example, investment bankers, traders and certain programmers.
(Photo: IMAGO/Schöning)
Frankfurt According to informed circles, Deutsche Bank AG is considering granting its non-tariff employees a salary increase of up to four percent on average. The development of the bonuses, on the other hand, is likely to depend heavily on the respective business area, as they will end the year with different results.
Individual pay rises could be above or below this average rate, according to people familiar with the matter. A spokesman for Deutsche Bank declined to comment.
Similar to other investment banks, Deutsche Bank is likely to reduce the bonus pool for underwriting bankers. On the other hand, traders in the fixed income and currency business can hope for higher premiums, they say. The exact changes of the bonus pools are not yet finalized.
On Wall Street, JPMorgan Chase and Bank of America are among the banks that could cut bonuses for their investment bankers by as much as 30 percent, Bloomberg has reported.
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Deutsche Bank’s debt issuance revenues have fallen 72 percent in the first nine months, while equity issuance revenues have plummeted 82 percent. In the face of market turmoil due to war and the energy crisis, many companies have shelved such plans. In contrast, Deutsche Bank’s earnings from bond trading rose 26 percent.
Deutsche Bank’s non-tariff employees include, for example, investment bankers, traders and certain programmers. Store employees are more likely to fall under the collectively negotiated wage agreements.
An average salary increase of four percent would be well below the inflation rate, which the Bundesbank sees at 8.6 percent this year and 7.2 percent in 2023. In March, employees at Deutsche Bank subsidiary Postbank pushed through a 5.2 percent increase in basic salaries.
More: Deutsche Bank quintuples quarterly profit – but is becoming more cautious on the return target